IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF PENNSYLVANIA

ROBERT S. CHEATLE, JR. and : CIVIL ACTION

NANCY A. CHEATLE

:

v.

:

DAVID A. KATZ and DAWN KATZ,

PARADISE CONTRACTORS, INC., :

PARADISE PINE HOMEOWNERS

ASS’N, PARADISE MGMT. GROUP, :

INC. and PARADISE DEV. GROUP, INC. NO. 02-4405

MEMORANDUM ORDER

THOMAS J. RUETER April 27, 2004

United States Magistrate Judge 

On April 26, 2004, the court held a hearing pursuant to the Settlement Agreement

and Mutual Release and Stipulated Order, executed by the parties on February 26, 2004

(hereafter “Settlement Agreement”). After careful consideration of all the testimony and the

arguments of counsel, the court makes the following:

FINDINGS OF FACT

1. The court finds that both appraisers (Edward G. Ireland, III and John C.

Davidson) are highly qualified and credible experts. Nonetheless, the court finds that both of

their reports contain deficiencies.

2. Mr. Ireland, when calculating the square footage of plaintiffs’ home,

improperly included the sub-grade areas of the basement, in contravention to the Uniform

Standards of Professional Appraisal Practice. When making his comparable analysis, Mr. Ireland

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exclusively relied upon properties in Lower Gwynedd, Pa., which is a more prestigious and

desirable locale, than the township where plaintiffs’ home is located. As Mr. Davidson testified,

most buyers would pay a premium for the Lower Gwynedd address. Mr. Ireland did not add any

value to the Lower Gwynedd properties on account of their neighborhood.

3. Mr. Davidson’s report also is flawed. In conducting his cost analysis of

the subject property, Mr. Davidson undervalued the plaintiffs’ land, appraising it at less than the

price purchased by plaintiffs two years earlier. Both experts agree that the value of real property

in the relevant area has increased in the past two years. Mr. Davidson also was incorrect in

failing to give added value to the fact that plaintiffs’ four-home enclave is protected by a remotecontrolled gate, a unique feature not available to the homes Mr. Davidson provide as his

comparables. Not only is the gate a deterrent to potential burglars, but inhibits the driving public

and unwelcome solicitors from gaining access to the plaintiffs’ property. Finally, Mr. Davidson

did not give enough monetary credit to the plaintiffs for the substantial improvement to their

basement, a very attractive feature to potential buyers.

4. Given the deficiencies in the Reports of the two experts, the court must

determine “a Fair Market Value figure between the parties’ figures, within [my] discretion.” 

(Settlement Agreement ¶ 5.) I determine the Fair Market Value (as defined in ¶ 4 of the

Settlement Agreement) of 834 Paradise Drive, Ambler, Pa., to be One Million Three Hundred

Thousand Dollars ($1,300,000.00).

CONCLUSIONS OF LAW

1. The court shall retain jurisdiction over this matter for purpose of enforcing

the Settlement Agreement, and these Findings of Fact and Conclusions of Law.

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2. As the above-captioned case is now settled in accordance with the

Settlement Agreement, the action is DISMISSED with prejudice, without costs, pursuant to

Local Rule 41.1(b).

BY THE COURT: 

__________________________________

THOMAS J. RUETER

United States Magistrate Judge 

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